Economics
Riots, Port Stoppages Dim South Africa Economic Growth Prospects
- Economists pare 2021 GDP growth forecast to 4.2% from 4.5%
- Electricity shortages and coronavirus remain risks to outlook
Debris outside the looted Dube Village Mall in Durban, on July 17.
Photographer: Guilem Sartorio/AFP/Getty Images
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South Africa’s economic growth prospects waned for the first time this year after deadly riots and a cyber attack on the nation’s ports operator weighed on activity.
Economists surveyed by Bloomberg predict gross domestic product will expand 4.2% in 2021, compared with a previous estimate of 4.5%. While that matches the central bank’s forecast, Governor Lesetja Kganyago has warned that the economic damage caused by last month’s unrest could “fully negate” the better-than-expected first-quarter expansion and have a lasting impact on investor confidence and job creation.